Friday, 5 February 2016

All you wanted to know about the Public and Private sectors in India

Public sector and private sector plays a significant role in the Indian economy as India is considered to be a mixed economy. Usually in a mixed economy like India, public sector, the private sector and joint sector all play a specific role ensuring the proper economic growth of the country. The Public sector units (PSU's) generally comes under the priority sectors comprising of the basic industries and infrastructures. These are essential in bringing further industrialization and socio-economic developments, thereby maintaining the price stability also. The private sector is the main moving force that brings industrialization in an economy. It introduces various new commodities, tools, equipments, techniques, innovations and technologies. On the basis of the ownership, the Indian economy is divided into public and private sectors.

Image credit: Financialexpress.com

Public sectors are also known as public sector undertakings, sectors enterprises, government concerns etc. Their role is to ensure proper functioning of the various public sector units. The following industries fall under public sector units like railways, arms and ammunitions, iron and steel, atomic energy, heavy electrical industries, ship building, generation and distribution of electricity and other various industries. The Public sector does investments like building roads, power projects, dams, railway tracks etc all lead to the capital formation and income generation. It also generates employment on a large scale providing strong industrial base and infrastructure. It helps in increasing export promotion and removes regional disparities.

Private sector enterprises are all those institutions which are entirely under the private hands. They run in private interest and their main motive is profit, but subjected to social control through government regulations. Private sectors may be domestic or foreign engaged in various fields of productivity purposes. The government of India has allocated specific roles to the private sector. It helps in increasing the business and trading activities, growth in national output and capital formation as well as market expansion. Industrial and agricultural development are brought about by the private sector enterprises.

In India, an emphasis has been given both to private and public sector enterprises in terms of development. Both the sectors contribute equally ensuring the economic development of the country. If these sectors continue to grow in the coming years then the day is not far when India will be highly developed and will be one of the top rankers in terms of industrial development and infrastructure. This, in turn, would gradually reduce various socio-economic problems in India like chronic unemployment, uneven distribution of wealth and make India a better place to live in.

Article byAnisha DuttaShe is a content evangelist who believes that the Science of today is the Technology of tomorrow. She can be reachedathttps://twitter.com/Anisha_Dutta29